Pair of Bids Opened for County Health Center
SEIU Representatives for Armstrong County Health Center employees Sharon Pope and Kristy Myers (right) talk with Armstrong County Commissioners yesterday morning after bids were opened for the possible sale of the Kittanning facility.
by Jonathan Weaver
If the Armstrong County Health Center is sold, it may be to one of two bidders.
Second Deputy Controller Billie Kirkpatrick opened two proposals yesterday morning during the Armstrong County Commissioners’ Public Meeting for the Kittanning-based healthcare facility.
Premier Healthcare Management, of Philadelphia, submitted a purchase price of $5.75 million and Center Management Group, of Inwood, New York, submitted a bid of $5.6 million.
Executive Director of Administration Dan Lucovich said 11 companies were interested in reviewing financial information, but only three submitted proposals.
A bid from Comprehensive Healthcare Management Services of New York was not opened or accepted since it was received following the proposal deadline.
Though the bids were accepted by commissioners, a decision was tabled per final review.
Susquehanna Group Advisors Managing Director Jay Wenger explained the bids were tabled for further due diligence on the two business proposals and to review the two companies’ future plan for the facility.
In addition to employees, Health Center Administrator Tom Parsons, Nursing Director Beth Costanzo and Financial Director Janet McKinley were all in attendance yesterday.
SEIU Healthcare Organizer Sharon Pope and Chief Negotiator Kristy Myers spoke on behalf of health center employees.
“Two bids of $5 million are going to stop you from raising taxes this year, but what does that do for you in the future? What does that do for the seniors in this community in the future?,” Pope asked. “Your estimated loss is $1.5 million for the health center - $5 million isn’t really going to get you that much further ahead.
“What (employees) would like you to do is actually come to the table and negotiate how to make those concessions to keep the health center a county-run nursing home for the people of the community.”
Commissioner Chair Pat Fabian said commissioners have received questions and concerns from dozens of health center employees.
Former County Commissioner Rich Fink opined that commissioners should also sit down and “do everything in (their) power to keep that health center here.”
A list of concessions employees are willing to make has been given to Lucovich, Myers said. Fabian confirmed concessions are being discussed, but said he has not been personally invited to those negotiations.
Pope also gave each commissioner a letter from Maybrook Hills Rehabilitation and Healthcare Center Certified Nursing Assistant Marcia Glunt about the hardship her and fellow employees have endured since the Blair County nursing home – formerly known as Valley View – was sold in 2013. Comprehensive Healthcare Management has since reportedly acquired the facility.
“Going from public to private is not a smooth transition, as there are many things to take into consideration,” Myers summarized. “You’ve been painted a very rosey picture about what it will look like – (that) it’s a smooth process and nothing changes, but it’s just not true.
(Commissioners) need to hear the other side of what privatization looks like.”
Wenger reiterated commissioners have stipulated the Armstrong County Health Center has to be maintained as a skilled nursing center for a minimum of 15 years and operate at the current Medicaid population.
Given his experience with at least six other counties, Wenger estimated financial bids would “absolutely” have been increased if not for those stipulations.
The County 2017 preliminary budget estimates costs for the county to operate the health center next year.
Earlier this year, Center Management reportedly acquired the Westhampton Care Center in Westhampton, New York and last year, acquired the residential health care facility and the three nursing homes operated in conjunction with the Diocese of Camden in Camden, New Jersey, for $40 million
Local News | jweaver November 4, 2016
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By jorn jensen, November 4, 2016 @ 8:30 AM
Interesting how a government-run operation continues to show red ink, yet private companies are willing to pay millions of dollars to try to own it, fix it and print black ink. Interesting.
By ktown_kid, November 4, 2016 @ 11:52 AM
You are exactly right jorn. That place ran in the black ink for years and now it’s been in the red for a few years. Maybe look at the management and the money trail. I bet you could find answers if you wanted too. A family donated the money for their pickup truck. The commissioners took that truck off of them and the county didn’t even pay for it. I will say this again and again. These 3 clowns are out of their league. Did you check the court house parking lot out yet? I would post pics if I could.
By sickofpayingforit, November 4, 2016 @ 11:54 AM
Agree 100% with Jorn. Almost 6 million dollar offer for a 1 million dollar annual deficit on the county budget? SOLD!
I don’t understand why the employees are so afraid of the private sector owning this. They will just have to remain competitive with their work performance and compensation packages, you know, how most of the people who are paying for this have to do. Anyone confident in their work abilities and knows they are “doing the right thing” at work, never fears a change in management structure…..
Also, yes, negotiations will go through a private sector process. Better sharpen up the pencils.
Good chance here for the commissioners to put their stamp on their time in office and make the strong, CORRECT, decision to get the county out of the health care business!!!